Compliance focus
We're focused on ensuring the integrity of the R&DTI program. We work closely with the Department of Industry, Science and Resources (DISR) on behalf of Industry Innovation and Science (IISA), to jointly administer the program.
The ATO and DISR regularly conduct compliance reviews and audits of R&D entities to ensure the ongoing integrity of the R&DTI program. While it is a self-assessment program, we have sophisticated systems in place to identify non-compliance. This includes a specific focus on larger businesses and high-expenditure claims, as well as those claims brought into focus through our risk-based approaches, including possible fraudulent claims.
In line with our general compliance approach for the tax and superannuation systems, we focus on making it easy for people to comply and hard for them not to.
R&D entity engagement
In continuing to ensure R&D entities get it right, we regularly engage with them through emails, the release of Taxpayer Alerts, updated web content and news articles related to the program.
We recently released 2 Taxpayer Alerts – Taxpayer Alert TA 2023/4 and Taxpayer Alert TA 2023/5 to warn entities and advisers about our concerns regarding incorrect R&DTI arrangements which were used to:
- claim the R&D tax offset in situations where it would not otherwise be available
- artificially increase the amount of the R&D tax offset claimed.
We encourage R&D entities and their advisers to read any of our new material or guidance and consider if they need to contact us or make a voluntary disclosure by amending their R&DTI claim.
Our specific compliance approaches across the entire R&D population include:
- high risk refund reviews
- focussing on anyone, including tax agents, who may be promoting arrangements to access the R&DTI to those who would be ineligible. We have information to help you get R&D claims right which includes details about promoter penalty laws
- the general anti-avoidance rule of Part IVA of the Income Tax Assessment Act 1936 now includes R&D tax offsets as a tax benefit for Part IVA from 1 July 2021.
For assurance large corporations are complying with the R&DTI program, we engage with them through the:
We focus on assuring the tax compliance of corporate populations with more information on how we engage with them through our population programs at Tax Avoidance Taskforce.
Due to strict taxpayer privacy and secrecy information laws, the Report of data about research and development tax incentive entities 2021–22 does not contain any information regarding our compliance activities.